McGrath completed a full on-site RUBA assessment on September 20, 2010. This assessment scored essential indicators at 100% and sustainable indicators at 96.3%, with an overall score of 98.15%.
McGrath operates a piped water system that serves nearly all 178 households; a few homes have individual wells or haul water. The FAA operates its own water system. The majority of residents use individual septic tanks; a limited City sewage system serves approximately 34 homes. Funds have been requested to expand the piped sewer system to the 144 houses and businesses currently using septic tanks. A private firm, McGrath Trash and Refuse, collects refuse for disposal at the City landfill.

RUBA Status & Activities This Qtr:

Updated financials have not been received this quarter, shifting many indicators to 'no.' Receipt of financial updates will quickly convert these indicators back to 'yesses.'
The current water/wastewater project with Village Safe Water in the grant cycle of July 1, 2009 to June 30, 2014.
This community has very stable employees and a strong and involved city council.
On August 16th, 2011, new RUBA staff (Michele Aranguiz) was assigned to this community.

RUBA Activities for the Coming Qtr:

RUBA staff will continue work with the city staff as requested by the administrator and council to meet any management capacity indicators that are not currently being met.

Scores:

Essential Indicators:

25 of
27

Sustainable Indicators:

26 of
27

Total Score:

51 of
54

Finances

Essential Indicators

Answer

Question

Yes

All revenues and expenses for the utility are listed in the utility budget.

Yes

The utility has adopted a balanced realistic budget.

Yes

Monthly financial reports are prepared and submitted to the policy making board.

Yes

The utility is current in paying all water/wastewater electric bills.

Yes

The utility has on hand a year's adequate fuel supply or it has a financial plan to purchase an adequate supply.

Yes

The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses.

McGrath adopted the FY11 operating budget with Ordinance 11-01. It is balanced and realistic with revenues and expenditures well defined for the utility department.
The water utility revenues total $335,500 and the expenses total $297,218 for a surplus of $38,282. The water utility has a Repairs and Maintenance line item within the Water Utility Expenses. The surplus is due to an increase of service line hookups and additional customers to the service line.
The sewer utility revenue totals $50,000 and the expenses total $79,847 for a deficit of $29,847. The deficit is due to a Village Safe Water (VSW) upgrade that has been prolonged and the sewer facility has been extended beyond its useful life with major repairs from the city while waiting for VSW to complete the project. The sewer utility has a high Repairs and Maintenance line item within the expenses that explains the majority of the deficit. Repair and Maintenance is projected to be $15,000.
The washeteria revenue totals $22,000 with the expenses of $21,658, for a surplus of $342. The washeteria has a Repairs and Maintenance line item within the washeteria expenses.
It has been stated that the excess revenue from the water utility and fund transfers from the General Fund, if needed, will be utilized to cover the costs of the sewer utility.

Accounting Systems

Essential Indicators

Answer

Question

Yes

The utility has adopted a collection policy and actively follows it.

Yes

The utility bills customers on a regular basis.

Yes

An accounts receivable system is in place which tracks customers and reports past due accounts and amounts.

Yes

An accounts payable system is in place.

Yes

The payroll system correctly calculates payroll and keeps records.

Yes

A cash receipt system is in place that records incoming money and how it was spent.

Yes

The utility has a cash disbursement system that records how money was spent.

Sustainable Indicators

Answer

Question

Yes

A chart of accounts is used that identifies categories in a reasonable, usable manner.

Yes

Monthly bank reconciliations have been completed for all utility accounts.

Yes

The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts.

Accounting Systems Comments

The collection policy is in Title 13 of the McGrath Code of Ordinances. The city utilizes colored paper for delinquent customer notices to remind them of the overdue bill and also a colored door hanger notice of disconnect.
McGrath utilizes QuickBooks Premier 2009, as a nonprofit, for tracking all financial transactions of the utility and other city finances are in separate classes within QuickBooks. McGrath has utilized the services of the RUBA contracted QuickBooks consultant.
The RUBA contracted QuickBooks consultant traveled to McGrath to provide assistance with a QuickBooks program rebuild. The city administrator stated that the consultant removed some classifications and added others to attempt to clear up redundant names and categories. In the process, some categories were broken out that should have not been. This issue is in the works to be fixed, but the time needed to do this is limited.
A chart of accounts was also generated from QuickBooks for the McGrath and is able to track the utility revenue and expenditure transactions.
Monthly bank reconciliations are made with the check register from QuickBooks and bank statements by the city administrator and the practice was verified by RUBA staff during the onsite visit.
Purchases for the utility are discussed by the administrator and program lead to confirm if the purchase is necessary and that funds are available in the budget. Decisions made for purchases outside of budgetary line items are determined by the level of necessity and availability of the general funds. Although discussions are done with the mayor, the mayor has stated that this is not necessary. Emergency purchases are made on the spot and utilizes the city's general fund. Past emergency utility purchases include a replacement heat exchanger and sewer tank.

Tax Problems

Essential Indicators

Answer

Question

Yes

The utility has a system to accurately calculate, track, and report payroll tax liabilities.

No

The utility is current on filing tax reports.

No

The utility is current on making tax deposits.

Yes

If there are any past due tax liabilities or recorded tax liens, a lien release has been issued or a repayment agreement has been signed and repayments are current.

Tax Problems Comments

A signed federal tax information sharing document has not been received this quarter. Updated tax information will be integrated into this on-line report as it is received.

Personnel System

Essential Indicators

Answer

Question

Yes

The utility has a posted workers compensation insurance policy in effect.

Sustainable Indicators

Answer

Question

Yes

The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language.

Yes

The utility has adequate written job descriptions for all positions.

Yes

The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation.

Yes

The utility has an adequate written hiring process.

Yes

The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance.

Yes

The utility has a probationary period for new hires that includes orientation, job training/oversight, and evaluations.

Yes

The utility provides training opportunities to staff as needed and available.

Personnel System Comments

McGrath has an current workers compensation policy through AMLJIA, effective to June 2012. They are up to date with payment, and are carrying a positive balance.
McGrath has an employee handbook provided by AMLJIA that has a hiring and evaluation process, reference to personnel folders, a 90-day probationary period for all new hires and promotions or transfers and other important information for a newly hired or rehired city employee. The city encourages employee training for city employees.

Organizational Management

Essential Indicators

Answer

Question

Yes

The entity that owns the utility is known; the entity that will operate the utility is set.

Yes

The policy making body is active in policy making of the utility.

Yes

The policy making body enforces utility policy.

Yes

The utility has an adequately trained manager.

Yes

The utility has an adequately trained bookkeeper.

Yes

The utility has an adequately trained operator or operators.

Yes

The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate.

Sustainable Indicators

Answer

Question

Yes

The utility has adopted an organizational chart that reflects the current structure.

Yes

The policy making body meets as required.

Yes

The utility complies with the open meeting act for all meetings.

Organizational Management Comments

McGrath owns the utility and has an ordinance code 13.04.010 which addresses service provided standards for the water utility and clearly states what and how services are provided.
The McGrath city council members are active in policy making for the utility and enforces those polices.
The city administrator acts as the utility manager, the utility foreman reports to the city administrator. The city administrator has over six years experience with the City of McGrath. The administrator has been awarded the 2005 AWWMA System Manager of the Year and has been recognized by Tanana Chiefs Council for outstanding dedication to the McGrath Water System.
The utility foreman has three plus years of experience and has been with the city for the last year.
There are two water operators employed by the city. One operator has certification in Water Treatment 1 and Water Distribution 1 due to expire December 31, 2012. The other operator has certification in Water Distribution Provisional and Water Treatment 1 due to expire on December 31, 2012 and has met the required continuing education units. The second operator was a water operator for McGrath, but left the community then returned after allowing the water certification to lapse. He is classified as an Operator In Training (OIT) for the City of McGrath.
The bookkeeper has been at the position for over two years and is a certified municipal clerk with the Alaska Association of Municipal Clerks and also has clerks training from the Alaska Municipal League (AML).

Operation of Utility

Essential Indicators

Answer

Question

Yes

The utility operator(s) are actively working towards necessary certification.

Yes

The utility has a preventative maintenance plan developed for the existing sanitation facilities.

Sustainable Indicators

Answer

Question

Yes

The manager receives a monthly O&M report from the utility operator and routinely "spot checks" the facilities to see that the maintenance items are being completed.

Yes

The utility has a safety manual and holds safety meetings.

Yes

Utility facilities have not suffered any major problems/outages due to management issues that are unresolved.

Yes

The utility is operating at the level of service that was proposed.

Yes

The operator provides status reports to the manager on a routine basis.

Yes

The utility has completed and distributed its "Consumer Confidence Report".

Yes

The utility is not on the "Significant Non-Complier" (SNC) list.

Yes

The utility maintains an inventory control list.

Yes

The utility maintains a critical spare parts list.

Operation of Utility Comments

The City of McGrath has provided training funds within the utility budgets and actively ensures employee participation in training opportunities provided by outside agencies, such as TCC.
A monthly preventative maintenance check list is generated for the water utility. The check list includes maintenance for the pumps, alarm battery backup system, exercising of unused valves, clean the chlorination injection point, chlorination vat of sentiment every six months and other maintenance of the utility equipment and facility.
AMLJIA has provided the water utility with a safety check list and it is available in the utility and administrator's office. This is used as a guide for safety meetings.
There have been no major problems or outages to date with the current utiltiy employees.
The operators and foreman report to the administrator or directly the council when the administrator deems it is appropriate. The foreman or operator reports to the council when clarity is needed on specific information regarding the utility plant. Routine operations are reported to the administrator and then forwarded to the council at a council meeting.
The City of McGrath has a current distributed CCR and a copy is on file at the utility.
The City of McGrath is not on the current SNC list.
The utility has an inventory control list and critical spare parts list and copies were provided.